(VOV) - Vietnamese rice is likely to enter a market with tougher competition from other exporters like India, Pakistan and Myanmar, says Vice Chairman of the Vietnam Food Association (VFA), Nguyen Van Bay.
According to Bay, Vietnam shipped more than 6.7 million tonnes of rice abroad in the past 11 months and it is expected to export nearly 300,000 tonnes in December to reach its export target of 7 million tonnes in 2011.
He says that Vietnam currently has more than 1.4 million tonnes of rice in reserve and businesses will continue purchasing rice from Mekong Delta farmers to prepare for export contracts in the coming year.
According to Bay's analysis, Thailand, the world’s biggest rice exporter, is now buying rice at a high price which gives Vietnam an advantage in the global market. However, rice prices in other markets, such as India, Pakistan and Myanmar, are about US$100/tonne lower than in Vietnam, which causes tough competition for contracts with African partners.
The VFA plans to penetrate foreign markets and ensure at least 30 percent profit for Vietnamese farmers, in accordance with the Government’s guidelines, Bay adds.